Commenting on results from the latest ABI Motor Premium Tracker, RAC Insurance director Mark Godfrey said:
“The Government’s string of insurance premium tax rises combined with the change to the discount rate for life-changing personal injury compensation claims have clearly already had a punitive effect on the cost of motor insurance.
“The fear is that we are just at the beginning and there is a very real prospect that prices will increase much further still.
“Younger drivers have been particularly hard hit by these changes, but in particular by the insurance premium tax rises. For some, telematics ‘black box’ policies have helped to mitigate the impact by providing significant reductions when compared to standard car insurance.
“The Government has consulted on the discount rate and we would urge early recommendations to provide a fair solution for claimants and motorists alike.”